Crude oil prices drifted lower on Monday as worries about excess supply in the market increased after a report showed a pickup in OPEC oil production last month.
The OPEC said production by cartel members rose by 41,000 barrels a day in July.
Last Friday, Baker Hughes’ data revealed that U.S. rig count rose to 869 in the week ended August 10, with the addition of 10 rigs. Genscape predicted last week that inventories at the Cushing, Okla. will rise.
While crude output has been increasing, crisis in Turkey and the resultant plunge of Lira have raised concerns about the outlook for global economic growth and possibility of a drop in demand. In fact, OPEC has forecast lower demand for crude oil next year.
Crude oil futures for September ended down $0.43, or 0.60%, at $67.20 a barrel, recovering from a low of $65.71.
On Friday, crude oil futures for September delivery ended up $0.82, or 1.3%, at $67.63 a barrel, lifted by International Energy Agency’s forecast that world oil demand will increase by 110,000 barrels a day to 1.5 million barrels next year.